and a whole lot more…

$ROK said its largest market U.S. has returned to growth in 1Q17 and emerging markets posted double-digit growth. The company said that oil & gas and mining remained its weakest verticals, but it has now been stable sequentially.

For FY18, $ROK expects diluted EPS in the range of $3.67-3.97, while adjusted EPS is expected in the range of $7.60-7.90. On a reported basis, sales growth is anticipated in the range of 4.5-7.5%, with organic sales growth seen in the range of 3.5-6.5%.

Industrial automation and information products provider $ROK reported a loss for 1Q18, impacted by $479.7MM in charges associated with the US Tax Act. Net loss was $236.4MM or $1.84 per share vs. a profit of $214.7MM or $1.65 per share a year earlier. Revenue however surged 6.46% to $1.58Bil. On an adjusted basis $ROK earned $1.96 per share.

$ROK said it is pleased with growth in China this year of about 12% of growth. And for next year, the company expects China to be close to 10%, which is a little bit lower than expected. $ROK would expect some continued variability in those growth rates going forward as well.

While $ROK expects another good year of sales and EPS growth in FY18, the company does not expect year-over-year EPS growth in 1Q18. $ROK has an unusual low tax rate and lower spending in 1Q17, and while for overall FY18 incentive compensation is a year-over-year tailwind, for Q1, it will be a modest headwind.

$ROK projects 2018 sales of about $6.7Bil, an increase of about $400MM compared to FY17. The company expects segment operating margin to be a bit below 21.5%. Excluding the impact of the sale of the business and the FY17 restructuring charges, this implies earnings conversion of about 35%.

For 4Q17, $ROK's recent acquisitions contributed 1.5 points of profitable growth and increased its technology, domain expertise and market access. During the year, $ROK added more resources to focus on acquisition and investment opportunities. $ROK continues to expect acquisitions to generate a point or more of growth each year.

$ROK expects FY18 sales growth of 5-8%, and organic sales growth of 3.5-6.5%. The company predicts EPS of $7.09-7.39 and adjusted EPS of $7.20-7.50 for FY18. $ROK sees heavy industries to grow a bit above the company average, with good contribution from oil and gas. $ROK also expects continued growth in consumer and transportation.

$ROK's total segment operating margin for 4Q17 decreased to 17% from 19.8% a year ago. The decrease was primarily due to higher investment spending, restructuring charges, and incentive compensation, partially offset by higher sales. Total segment operating income fell 7% to $283.5MM.

$ROK's pre-tax margin, which includes the gain on the divestiture, for 4Q17 increased to 16.4% from 15.4% last year. The increase was primarily due to the gain on the divestiture and higher sales, partially offset by higher investment spending, restructuring charges, and incentive compensation.

$ROK reported a rise in 4Q17 earnings driven by higher sales and the gain on the divestiture. Net income rose to $204.6MM or $1.57 per share from $185.2MM or $1.43 per share last year. Sales grew 8.4% to $1.67Bil, on positive contributions from all regions and broad-based growth across most verticals. Adjusted EPS increased 11% to $1.69.

$ROK expects transportation to be up high-teens for the full year 2017 with automotive higher than tire. Consumer will also be strong for the full year. And within that, the company expects food and beverage to be strong, and Life Sciences will continue the strong trend. $ROK expects home and personal care to be a little bit weaker.

$ROK's capital expenditures for 1H17 increased 28% from last year. The company sees an uptick in CapEx, primarily related to its R&D investment, and expects it to get closer to the $150MM, which is higher than last year.

$ROK's hedging and compensation headwinds forecast is $55-60MM year-over-year if looking through the 1H17. The company said that of this, $20MM was booked in 1Q17 and the remainder so $35-40MM was booked in 2Q17. For 2018, $ROK does not expect another headwind from incentive compensation.

$ROK said both Control Products & Solutions segments share a common sales organization and common supply chain. So, a very large part of the incentive compensation within both segments relates to the overall performance of the company.

$ROK lifted FY17 sales growth outlook to 4.5-7.5% from 1-5% and its EPS guidance to $6.06-6.36 from $5.56-5.96. $ROK raised its 2017 adjusted EPS estimate to $6.45-6.75 from $5.95-6.35. Including the impact of acquisitions and a smaller headwind from currency, the company now projects 2017 sales of about $6.25Bil at the midpoint.

$ROK's segment operating earnings for 2Q17 increased by 7% to $296MM from $277.5MM in the previous year quarter. The increases was primarily due to higher sales, partially offset by higher incentive compensation. However, segment operating margin fell to 19% from 19.3% and pre-tax margin declined to 14.8% from 15.1%.

$ROK reported a rise in 2Q17 earnings driven by higher sales and lower effective tax rates, partially offset by higher incentive compensation. Net income rose to $189.5MM or $1.45 per share from $168MM or $1.28 per share last year. Sales grew to $1.55Bil from $1.44Bil. Adjusted EPS increased to $1.55 from $1.37.

$ROK said free cash flow for 1Q17 was $271MM with free cash flow conversion on adjusted income of 119%. The company expects free cash flow conversion to be above 100% of adjusted income for full year 2017.